Economic Impact Analysis Of The Proposed Asphalt Roofing And Processing NESHAP, Final Report.

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Pursuant to Section 112 of the Clean Air Act, the U.S. Environmental Protection Agency (EPA) is developing a National Emissions Standard for Hazardous Air Pollutants (NESHAP) to control emissions released from the domestic production of asphalt roofing products. In 1999, 40 companies owned and operated 123 facilities that produce asphalt roofing materials. EPA estimated that six of these facilities will incur costs associated with installing and operating emissions control equipment. These six roofing manufacturers and eight refineries will also incur costs to perform monitoring, recordkeeping, and reporting activities associated with this rule. The total annual costs of the rule are estimated to be small. They are less than $1.1 million. Price and quantity impacts on the various asphalt roofing products markets are also very small. Prices are expected to change by only a few cents, representing hundredths of a percent of base prices. Similarly, market quantities are projected to decline by less thatn 0.01 percent. Industry-wide profits are projected to decline by roughly $42,000. No facilities are projected to close, and no change in employment is expected. Of the 40 companies owning asphalt roofing products facilities, 26 are small business based on the Small Business Administration definition of a small business for companies within NAICS code 324122 (Roofing asphalts and pitches, coatings, and cements). The economic impacts of this rule on small businesses is also examined pursuant to the Small Business Regulatory Enforcement Fairness Act (SBREFA) and the Regulatory Flexibility Act. None of the 26 small companies are expected to incur regulatory costs exceeding 1 percent of baseline sales.